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General Laws

Section 6. Subject to limitations in other laws respecting the use of particular monies in the fund and the provisions of any trust agreement for bonds of the trust, the board may also apply and disburse monies and revenues in the fund or segregated accounts therein:

(i) after taking account of any grant made by the department pursuant to section 33E of chapter 21, to provide, and enter into binding commitments to provide, a subsidy for, or to otherwise assist local governmental units in the payment of, debt service costs on loans and other forms of financial assistance made by the trust; and

(ii) to provide reserves for, or to otherwise secure, amounts payable by local governmental units on loans and other forms of financial assistance made by the trust pursuant to this chapter.

The board shall apply and disburse monies in the fund, including contract assistance provided in this section and in section 6A, or shall otherwise structure the debt service costs on loans and other forms of financial assistance made by the trust, to provide a subsidy or other assistance to local governmental units in the payment of debt service costs on such loans and other forms of financial assistance equivalent to a grant of 25 per cent of the eligible costs on the water pollution abatement project financed by the loan or other financial assistance. Notwithstanding the foregoing but subject to the limit on contract assistance provided in this section, all permanent loans and other forms of financial assistance to finance costs of water pollution abatement projects for which the trust shall execute and deliver loan agreements on and after October 1, 1995 shall provide a subsidy or other assistance equivalent to a grant of 50 per cent of the eligible costs of the project financed thereby. Notwithstanding the foregoing but subject to the limit on contract assistance provided in this section, all permanent loans and other forms of financial assistance made by the trust to finance the costs of water pollution abatement projects on the department’s intended use plan for calendar year 2002 and any subsequent calendar year shall provide for a subsidy or other assistance in the payment of debt service thereon such that such loans and other forms of financial assistance shall be the financial equivalent of a loan made at an interest rate equal to 2 per cent, but all permanent loans and other forms of financial assistance made by the trust to finance the costs of certain water pollution abatement projects on the department’s intended use plan for calendar year 2009 to calendar year 2019, inclusive, that meet the criteria listed below shall provide for a subsidy or other assistance in the payment of debt service such that the loans and other forms of financial assistance shall be the financial equivalent of a loan made at a zero rate of interest, and the costs of water pollution abatement projects on an intended use plan that are eligible for a permanent loan or other financial assistance from the trust at the financial equivalent of a loan made at a zero rate of interest shall not exceed 35 per cent of the total costs of all water pollution abatement projects on the intended use plan. Projects that meet the following criteria, as verified by the department of environmental protection, are eligible for the zero rate of interest loans:

(1) the project is primarily intended to remediate or prevent nutrient enrichment of a surface water body or a source of water supply;

(2) the applicant is not currently subject, due a violation of a nutrient-related total maximum daily load standard or other nutrient based standard, to a department of environmental protection enforcement order, administrative consent order or unilateral administrative order, enforcement action by the United States Environmental Protection Agency or subject to a state or federal court order relative to the proposed project;

(3) the applicant has a Comprehensive Wastewater Management Plan approved pursuant to regulations adopted by the Department of Environmental Protection;

(4) the project has been deemed consistent with the regional water resources management plans if one exists;

(5) the applicant has adopted land use controls, subject to the review and approval of the department of environmental protection in consultation with the department of housing and economic development and, where applicable any regional land use regulatory entity, intended to limit wastewater flows to the amount authorized under zoning and wastewater regulations as of the date of the approval of the CWMP.

To provide for such subsidy or assistance, in addition to the contract assistance provided in section 6A, the state treasurer acting on behalf of the commonwealth shall enter into an agreement with the trust that the commonwealth shall provide contract assistance for debt service obligations on loans and other forms of financial assistance made by the trust up to a maximum amount of $45,000,000 per fiscal year of the commonwealth. Such contract assistance agreement shall provide for payments by the commonwealth to the trust at such times during each fiscal year and upon such terms and under such conditions as the trust may stipulate. The trust may pledge such agreement and the rights of the trust to receive amounts there under as security for payment of debt obligations issued to the trust. Such agreement shall constitute a general obligation of the commonwealth for which the faith and credit of the commonwealth shall be pledged for the benefit of the trust and of the holders of any debt obligations of the trust which may be secured by the pledge of such agree mentor of amounts to be received by the trust under such agreement.

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